Los Angeles daily herald., 1887-05-05
OLD AFFAIRS OF THE L. r. R. II.
stinony Being Taken by the
Government Commission,

New YoRK, May determination
into the affairs Of the Union Pacific
Railway was resumed by the Govern
ment. Commission to-day. Hon. David
7. Littler, whose duties as a member oi
the Illinois Legislature detained him
from the former sittings, was present.
| Artemus II. Holmes, one of the counsel
of the Tn Pacific. was witness. He
re ased the manner of construction OF
the Union Pacific. There were origin
ally four roads, the Kansas Pacific, The
Denver Pacific, Northern Pacific and
Oregon Railway. In the. fall
Of 1876 the Kansas Pacific belonged
to of combination of bond
holders of the Denver Pacific,
and Mr., Holmes said the total incum.
brance of the roads in 1877 was bonded
debt of go 81, 600; interest. y. $685.
759. Thi1 severed the whole road from
Kansss City to Denver. The stock OF
the road was valued at about 10000 !
900 at that time. The Government lien
was Sc. S04 900. The capital stock ef
the Denver Pacific was about "a. 900, 600. !
A Receiver was appointed for the Kan
sas Pacific in 1876. From 1873 to 1876 |
the Kansas Pacific was as low as 81 or
SO; the Denver Pacific $40, while Others
Of these securities named were practi- |
cally valueless.
At the beginning, in 1877, a marked
was noticed in the business
and prospects OF the Union Pacific,
through the development OF the country
which had been considered worthless
previous to that time. The mortgage on
the Denver extension was sued on fore.
closure, and the time having arrived
when the interests of the Uaion Pacific
and Kansas Pacific roads were evidently
identical, the consolidation was effected
and the mortgage settled, the Union Pa
cfic assuming control. This was in the
spring OF rs. Holmes related how it
was that in 1880 the 20, 9S6
sharesof the Denver Pacific stocksin bands
Of Goull and Sage Trustees mortgages
was released. Holmes was directed by
Sidney Dillon to draw a complaint in
the matter and served it on the Trustees.
II set forth that Denver Pacific stock
had no market value and added nothing
10 the value of securities held in the
hands Of the Trustees.
The answer virtually submitted the
to the Court, and the stock
was released on the stipulation
hat other securities take its
place. II. NJ. Ruggles was appointed
'efereee on Holmes suggestion, and
Russell Sage, Secretary of the Kansas
Pacific, and others, examined Ruggtes
'eport Of January 81, 1880.
Holmes examined the referees report
md declared it not the hadwriting of
Ruggles, but could not say whose writ.
ng it was. The decree was dated
wenty -four hours after the findings. and
he stock was received. Holmes said
lie did not know at this timesthat ar.
icles of consolidation of the Union aud
Kansas Pacific were in prepars
ion, though they bore the date of JAN
larry "a, the day after that Of the decree
Dillon did all the business of the con
olidation and Holmes knew nothing of
/ until afterwards The Denver stock was
transferred to Gould, Sage and others
md later, after consolidation, was ex.
hanged for consolidated stock at par,
he latter stock was salable at 100 cents
IN the dollar.
Aftidavits of Edward Lauderbach,
lohn Anderson, Dwight Townsend and
ngersoll, were presented. They de-
lare Guthridge assented to the plan. {
iuthridge jumped to his feet upon The {
OF these affidavits and de- {
Jared them all perjured, and that Col.
ngersoll knew it. Ingersoll said he {
egretted Guthridge had taken upon !
himself TO say all these gentlemen per.
ured themselves, and that he
knew they were false.
'uch q statement coming from
'uthridge or any one else, placed thatman
below men who endeavored to
10 honest and honorable things, and
ontiDued: "Now tell the court be-
ieve you (Gutbridge)were acting corrupt.
y in behalf of the Western Union Tele.
raph Company in all the proceedings.
regret any one should have said l
new these affidavits false, aud that
hese men are liars. We will see who is
liar" The Colonel then asked for
ime to prepare afiidavits and the mat
er closed.
I